Can I File Bankruptcy If I Have Not Filed Taxes?

No one likes to file their taxes every year, especially if there is a tax liability to pay. It also takes a lot of time to get your documents in order for a tax preparer, and if you undertake the task yourself it can be confusing to know whether you are preparing your return properly. But if you need to get financial relief, one of the first things you should do is get your tax situation in order. This is because if you are considering filing for bankruptcy, your case can be held up for the failure to file taxes.

You are not necessarily prevented from filing a case if your taxes have not yet been filed, but there will be delays in the swift administration of your case. If you file bankruptcy before you file taxes, you should expect the following things to happen:

•         The Trustee will ask you to finalize your taxes and provide them to the taxing authorities present at your 341 hearing rather than sending them to the IRS to process.

•         The entry of discharge may be postponed in your case, until taxes are filed. Discharge is the entry in your bankruptcy case that means your debts are no longer due, and this is the reason you file for bankruptcy so it is in your best interest to file your taxes so you can obtain the bankruptcy discharge of debts.

•         Taxes are generally not dischargeable in bankruptcy, so not filing your returns will not eliminate the need to pay any tax debt due.

In many cases it is best to file taxes and then file for bankruptcy, because depending on the circumstances present in your case, you may not get to keep any refund you are due. Many people count on a tax refund to get caught up on debts or pay for auto and/or home repairs, if this money is withheld you may not be able to do these things. This is not to say you should file your taxes and immediately spend any refund, but if you have legitimate needs it is excusable to spend a refund shortly before filing for bankruptcy. The key is to keep record of your expenses and be prepared to show the Court what the refund was used for if you do get one and spend it right before filing a bankruptcy case.

If you have more questions about bankruptcy and debt, contact our office. We can be reached by phone, or online at www.law-ri.com.

How Far Behind Do I Have To Be To Modify my Mortgage?

Mortgage loan modifications are generally requested by homeowners who are struggling to make their payments. In most cases the borrower is several months behind on their house payments and needs relief in the form of a lower payment. Enter the modification process. The process includes rewriting the loan to a lower interest rate, which necessarily lowers the monthly payment. But not all borrowers are severely delinquent on their mortgage payments, and may even have maintained their loan in a current status. This group of homeowners may still want to modify their mortgages though, and wonder if this type of loan is available in their circumstances.

You do not have to be any certain number of months behind on your mortgage payment to receive a mortgage modification. Here are some examples of how a modification can help you even if you are not behind on your mortgage:

•         The interest rate will be lowered, and so will your monthly payments as a result. Even people who are current on their payments can benefit from a lower payment. Lower payments allow borrowers to save more money each month, or to pay off other debts faster.

•         A major expense may have arisen that makes it difficult to keep paying your house payment on top of the unexpected expense. This is most commonly seen when a homeowner has experienced a major medical set back or a reduction in salary. A modification can help get the borrower through a temporary financial hardship in these cases.

If you are able to keep making your payments, that could be better for you. Sometimes people are told they can only modify their mortgage if they are behind. But that is just not true and the consequences can be severe if you deliberately stop paying. When you fall behind on your mortgage your lender has the option to foreclose, and that can put you in the position of needing to modify rather than doing it to alleviate a temporary financial crisis. Every situation is different, which is why you need personalized advice. We have seen all sorts of fact patterns, and can help you get the relief you need no matter the set of facts. Call today.

If you have questions about mortgage modifications, call us today or reach us online at www.law-ri.com. We have multiple locations to serve you and can schedule a time to meet at the office most convenient for you.

Four Tips For A Smooth Mortgage Modification

There is nothing more frustrating than making a plan and have it go haywire. Sometimes there are thing that are out of your control, like a rainstorm during your beach vacation or a wait at the doctor’s office, but it is always nice when the plans you make go off without a hitch. However, that is not always possible and unexpected events have a way of interrupting even the best of intentions. Knowing in advance what types of obstacles might arise can help you plan for not only your ultimate goal, but also how to maneuver around those obstacles.

When you ask your lender to modify your mortgage, you can expect to encounter some hiccups along the way. These hiccups can delay the final outcome and cause you to duplicate your work. Here are four tips for a smooth mortgage modification process:

•         Keep copies of everything you send to your lender, including notations regarding your method of service. If you use UPS or FedEx, keep a tracking number and print out proof of delivery. Also, be sure to make notes on all mailings with an inventory of what was included in the package and keep copies of those things as well.

•         Write down dates, times, and names of people you talk to at the bank about your application.

•         Document your income and expenses so you know what amount you can afford to pay. It does no good to ask for a modification only to be given new loan terms that are still out of reach. You need to know in advance what payment amount you can afford.

•         Allow a professional to handle the request for you. A professional will keep track of your case, and make counteroffers when the outcome doesn’t meet your needs.

A loan modification is often times the best way to keep your house, and can be a quick solution when done properly. But when lenders fail to do all they are required, your case can seem to go on forever with no real relief in sight. We know this is frustrating, and that is why we take special care to keep your case moving and to keep you informed.

For more information about how to have a smooth mortgage modification process, call us today or reach us online at www.law-ri.com. We have multiple locations to serve you and can schedule a time to meet at the office most convenient for you.

Do I Have To Pay A Down Payment To Modify My Mortgage?

Mortgage modifications are a great way to reduce your monthly mortgage payments. A modification will lower your interest rate, thus giving you a lower payment. But there are rules and procedures to follow and it is a good idea to have some general knowledge before you call your lender about this option. First, you need to know that your lender has the power to change the terms of your mortgage because it is their mortgage to modify. Second, you should not be asked to have your home appraised because that happened when you bought your home and used your lender for the financing. Valuation data should already be part of your existing loan file. Third, you should expect to be provided an application to fill out and return, and should do so promptly with any documents requested.

A question that often arises is whether the homeowner has to pay anything out of pocket for the modification, and while all modifications are different the answer is generally that no upfront funds are needed. 

Even though you will go through a closing just like when the house was bought, you can roll the closing costs into the modification and should also not be asked for a down payment. Those are the things you should not have to do, it is also good to know what you will have to do though and those include:

•         Proving financial ability to repay the modified loan. This is most typically done by providing paystubs and copies of tax returns.

•         Providing your employment information. You will be asked to fill out an application for modification and part of that application contains spots to provide your employer’s name, address, phone number, and how long you have been employed.

•         Insuring the home and listing the lender as the loss payee on the policy.

•         Maintaining the property taxes in a current status.

If you are interested in modifying your mortgage, let us help. We work with lenders every day to work out solutions for our clients’ financial issues. We know your money is important to you and work hard to help you transition from a bad financial spot to one that is more stable and secure.

For more information about what is required to modify your mortgage, call us today or reach us online at www.law-ri.com. We have multiple locations to serve you and can schedule a time to meet at the office most convenient for you.

How To Spot A Mortgage Modification Scam

With a questionable economic and political future, everyone is trying to do all they can to save a dollar and secure their financial future. For most of us that means holding down a job and cutting back on expenses. Unfortunately, not everyone subscribes to the idea that money should be made honestly and there are plenty of scammers out there waiting to trick people out of their hard earned wages. You have to be careful to avoid these people and companies if you want to hang on to you cash, and sometimes it takes knowing what to watch out for to stay safe.

If you are thinking about modifying your mortgage, you no doubt have done some research to see what options are available to you. The web is full of information, but not all of it is accurate and not all of the “offers” you come across will be legitimate. Here are some ways to spot a mortgage modification scam:

•         If you are asked to make a down payment, the person or company you are dealing with is probably not trustworthy.

•         If you are given a guarantee that your loan will be modified, or will be modified a certain way you are likely not dealing with an honest vendor.

•         If you are guaranteed a pending foreclosure will be dismissed you are talking to the wrong person or company.

•         Do not agree to pay for help instead of making your mortgage payment. While reputable people do charge for their services, they will not advise you to pay them instead of your making your house payment.

•         Never give your personal or financial information to someone over the phone, or to someone you have not met. Plenty of companies make cold calls to solicit business, but then offer no real help. Request an in person meeting before turning over any of your private information.

You have enough on your plate if you are trying to modify your mortgage; there is no need to add to that burden by dealing with a dishonest company. Our firm has years’ of experience helping people get out of debt, and can offer solutions that meet your needs.

For more information about how to avoid a mortgage modification scam, call us today or reach us online at www.law-ri.com. We have multiple locations to serve you and can schedule a time to meet at the office most convenient for you.

Common Violations Lenders Make During Mortgage Modifications

Everyone makes mistakes, and most mistakes can be fixed. But when the mistake has an impact on your daily finances, you need a remedy sooner rather than later. One area where mistakes that affect your finances are made is the area of mortgage loan modifications. Most lenders work diligently to get the process completed in a reasonable time frame and without error, but that is not to say that every request for modification goes off without a hitch. Mistakes are made, and even worse sometimes, the lender commits a violation of what is required. When that happens you have to call the lender out for their violation, and work to make it right.

Common violations lenders make during mortgage modifications include:

•         Unreasonable delays in processing the application and other paperwork. Too many homeowners have seen their request for modification take an extraordinarily long time to complete. Your lender should not drag their feet or fail to mention that there are other items needed in order to complete the review. If you are not made aware of documentation that is missing within about 5 days of submission, your lender is not acting in good faith.

•         Requesting duplicate documents. This goes hand in hand with delay and is a big no-no. Your lender should not continue to ask you for the same documents over and over. Doing so can put your request in jeopardy and prolong the process.

•         Continue to foreclose on your home. This is called dual tracking and it is not permitted. A decision regarding the modification must be reached and given to you before a lender resumes a foreclosure action.

•         Advising homeowners they have to be in default in order to qualify for a modification. This is simply not part of the process and it is a violation for the lender to provide you with this information.

You should also not have to remit a down payment or sign any modification documents that waive any of your legal rights. This can be tricky if you don’t know what language to look for, but we can help. Legal terminology is hard to understand, but we have the legal experience and know-how needed to relay these terms to you in a way that makes sense. Call us today for help modifying your mortgage.

For more information about mortgage modifications, call us today or reach us online at www.law-ri.com. We offer appointments at multiple locations for your convenience and can schedule a time to visit with you soon.

Should I Call About A Mortgage Modification Or Put It In Writing?

If you have ever booked a hotel, bought tickets to an event, or made a dinner reservation you probably got a confirmation number or email, especially if you made the arrangements over the phone. The simple truth is that when business is conducted over the phone or on a handshake, it is always the best idea to confirm the terms in writing. If important information is not reduced to writing, it is hard to prove. And this becomes important when there is a discrepancy, a miscommunication, or a misunderstanding.

If you are modifying your mortgage, you will definitely want to put that transaction in writing. While it is perfectly fine to call your lender to make an initial inquiry as to the modification process, anything you do thereafter should be in writing and copies kept for your records. Here are a few of the things you need to keep track of, in writing:

•         Keep a copy of the application for modification you fill out and send to your lender.

•         Send all communication to your lender by certified mail, and keep copies of proof of delivery.

•         Any letters or emails you send or receive should also be kept.

•         Copies of all documents you provide your lender should be attached to a cover letter and a copy of that cover letter, with the attachments as sent should be retained for your files.

•         When you do communicate via phone, follow up the content of that conversation with a writing to confirm your understanding of what was said and keep a copy of that letter.

This sounds like a lot of paperwork and a lot to keep track of, and that is true. No doubt the process can become overwhelming and take up a lot of your time, which is why you should allow a professional to handle the process for you. We have experience helping homeowners modify their mortgages to more manageable repayment terms, and can help you too. We know how to track your application quickly, and get you the results you need to make a difference in your monthly budget.

For more information about a mortgage modification, call us today or reach us online at www.law-ri.com. We offer appointments at multiple locations for your convenience and can schedule a time to visit with you today.